Strategic Decarbonization Planning: A Guide for Property Managers to Future-Proof Their Buildings

Chakrapan Pawangkarat

Member ASHRAE

Head of Property and Asset Management, JLL Thailand

Secretary-General, Property Management Association of Thailand

12 July 2025

The global shift toward decarbonization is not a distant ideal—it's a current imperative. As buildings account for nearly 40% of global greenhouse gas (GHG) emissions, the real estate sector is now central to climate action. For property managers, this presents both a challenge and an opportunity: how to operate existing buildings more sustainably while maintaining performance, cost-effectiveness, and asset value.

To help with this, ASHRAE—alongside USGBC and NYSERDA—has released the Strategic Decarbonization Planning Guide, a practical, step-by-step framework designed to help commercial building stakeholders implement real, measurable carbon reductions. This guide is especially valuable for property and asset managers, as it integrates decarbonization directly into long-term maintenance, capital planning, and operations.

🧭 What Is Strategic Decarbonization?

Strategic decarbonization is the process of developing and implementing a multi-year, actionable plan to reduce carbon emissions from existing buildings. It involves:

• Energy efficiency improvements

• System electrification

• Adoption of renewable energy

• Low-GWP refrigerants

• Grid-responsive operations

• Reduction of embodied carbon

• Carbon offset strategies for residual emissions

The key is to align decarbonization with asset lifecycle planning and capital upgrades, rather than treating it as a separate or optional sustainability initiative.

🔑 Why It Matters for Property Managers

Strategic decarbonization can:

• Improve building performance and occupant comfort

• Reduce operating costs (energy, maintenance, and repairs)

• Enhance property value and tenant retention

• Future-proof assets against tightening regulations and carbon pricing

• Align with ESG goals and investor expectations

• Make compliance with policies like Building Performance Standards (BPS) and Local Laws easier

🛠️ The Six-Step Framework for Strategic Planning

The ASHRAE guide outlines six clear, scalable steps to help you design and execute a decarbonization strategy for your building portfolio.

1. Set Goals and Objectives

Establish measurable carbon reduction targets that align with corporate sustainability goals, investor mandates, and local/regional regulations (e.g., 30% emissions reduction in 5 years or net-zero by 2040).

Tips:

• Use GHG inventory tools to understand your building's carbon profile (Scopes 1 and 2).

• Consider both absolute and intensity-based targets (e.g., kg CO₂e/m²/year).

2. Analyze Building Performance

Conduct a comprehensive energy audit and develop a baseline energy and carbon profile using ASHRAE Guideline 14 or similar modeling standards.

Focus Areas:

• HVAC system efficiency

• Lighting and controls

• Building envelope performance

• Equipment scheduling and load profiles

• Refrigerant types and leakage risk

Tools:

• Energy modeling software (eQuest, EnergyPlus, IESVE)

• Utility data analysis (interval data preferred)

• Facility condition assessments (FCA)

3. Identify Decarbonization Measures

Map out technical opportunities and operational upgrades, including:

• Electrification of heating systems via heat pumps

• Lighting upgrades and smart controls

• Envelope insulation and glazing improvements

• Rooftop solar and battery storage

• Low-GWP refrigerants (R-1234yf, CO₂ systems)

Consider phasing projects based on cost, ease of implementation, and capital cycles.

4. Integrate with Capital Planning

This is where strategic planning pays off: integrate decarbonization with existing capital expenditure (CAPEX) and operations budgets.

Example: If HVAC replacement is due in 2027, design the upgrade to support electrification and carbon goals now, using heat pumps and controls instead of gas boilers.

Approach:

• Bundle energy retrofits with necessary system renewals

• Align with 5–10 year asset plans

• Explore financial incentives, rebates, and green financing

5. Implement, Track, and Adjust

Roll out the selected measures with defined Key Performance Indicators (KPIs) such as:

• kWh/m²/year

• CO₂e per square meter

• Annual energy cost savings

• System runtime hours

Use dashboards and submetering to monitor progress and make data-informed adjustments over time.

Suggested KPIs:

Metric	Why It Matters
Energy Use Intensity (EUI)	Primary benchmark for efficiency
Carbon Intensity (kg CO₂e/m²)	Tracks decarbonization success
Thermal Discomfort Hours	Captures occupant experience
Peak Load Reduction (%)	Supports grid resilience

6. Review, Report, and Iterate

A decarbonization plan is a living document. Review annually and revise based on:

• Performance data

• New technologies and market trends

• Policy changes or incentives

• Lessons learned from implementation

Incorporate these insights into ongoing CAPEX/OPEX planning across your portfolio.

💼 Practical Benefits for Property Managers

Benefit	Description
💸 Lower utility costs	Reduce energy bills through efficiency and renewables
🏢 Higher asset value	Green buildings attract better tenants and command higher rents
🧾 Easier compliance	Aligns with ESG disclosures, local energy laws, and performance mandates
🛡️ Risk mitigation	Prepares for carbon regulations, energy volatility, and insurance premiums

🔧 Getting Started: 5 Actionable Steps

1. Download the ASHRAE Guide here

2. Assemble an internal team: operations, engineering, finance

3. Conduct an ASHRAE Level II audit + energy/carbon modeling

4. Develop a 3–5 year decarbonization roadmap

5. Pilot a project (e.g., HVAC upgrade + controls + solar + smart meters)

✳️ Final Thoughts

Decarbonization is no longer optional—it's a defining factor in building relevance, market competitiveness, and operational excellence. The Strategic Decarbonization Planning Guide equips property managers with a clear path to take control, make the case, and lead the transformation of their buildings into future-ready assets.

It’s not just about being green—it’s about being smart, prepared, and resilient.